Economy Looks Favorable for Housing, But Commission
Pressures Remain

That’s the consensus view of experts interviewed by Real
Estate Broker’s Insider for our annual outlook — although it might be wise to note that predicting the future is never an exact science.

(Boonton, NJ, January 11, 2017) —
Home prices are poised to keep climbing in 2017, thanks
to rising incomes and a tight supply of homes for
sale.

While economic forces seem mostly favorable, real
estate brokers are likely to face continued pressure on
commissions by consumers, along with increasing demands
for more generous splits from agents.

That’s the consensus view of experts interviewed by
Real
Estate Broker’s Insider for its annual outlook
— although it might be wise to note that predicting
the future is never an exact science.

"We think housing will begin to march forward in the
coming years," says National Association of Realtors
Chief Economist Lawrence Yun.

However, it could be a slow march. Zillow forecasts
home values to slow to a 3 percent appreciation rate by
October 2017, down from a 6 percent pace in 2016.

Many expect a flood of young buyers in 2017. First-time
buyers largely disappeared in recent years, but that
trend has reversed. After slipping for three straight
years, the share of sales to first-time buyers in 2016
ticked up to 35 percent, according to the National
Association of Realtors.

"We’re already at a point where the largest group
of buyers is millennials," says Svenja Gudell, chief
economist at Zillow. "Especially for first-time home
buyers, we’re going to see the number of millennials
rising."